2. Solow Growth Model that the saving rate, s= 0.2 and the rate of depreciation d = 0.05 Further, let A Suppose that the production function takes the form Y = AK1/3 N2/3. Assume =1, and N-2, initially. a.) (10 points) Assuming that L and A remain fixed, what is the steady state capital stock? Suppose the initial level of capital stock Ko = 4. What is the short run growth rate of capital along the transition to the steady state at Ko? What is the short run growth rate of GDP along the transition path to the steady state at Ko? 2. Solow Growth Model that the saving rate, s= 0.2 and the rate of depreciation d = 0.05 Further, let A Suppose that the production function takes the form Y = AK1/3 N2/3. Assume =1, and N-2, initially. a.) (10 points) Assuming that L and A remain fixed, what is the steady state capital stock? Suppose the initial level of capital stock Ko = 4. What is the short run growth rate of capital along the transition to the steady state at Ko? What is the short run growth rate of GDP along the transition path to the steady state at Ko